>> this is "taking stock" for monday, december 30. we are going to speak to the president of the new york times alliance just one day before the new york square times square new year's party. we also post 2014. i talked to an executive to hide all that wonderful bubbly champagne. and it is monday because my

producers will once again try to stop me with a mystery guest. but first, bloomberg headlines. >> drone test centers have been approved in six states. administrators explain why these sites are more. >> it shows great promise, but also brings with the great challenges. what the test sites provide are a structured framework where we are able to conduct research, conducted test operations, and really understand how we can safely integrate the aircraft into the national airspace. >> this is the site for one of the new first regulatory moves for on-air -- unmanned aircraft. meanwhile, the stocks rose the most in four years. retire, and blackstone will invest 200 million in the clog maker.

and cooper tires said it is dropping plans to be bought by india's apollo tires. a lack of financing for the transaction, they will be seeking damages. apollo is disappointed and will also sue. it could be that the rubber meets the road in front of the courthouse. >> thank you. our theme today, celebration. days the winter olympics in sochi, russia will be celebrated. but a cloud of fear and unease has covered the upcoming event. a suicide bomber has killed more than 30 people on a bus. have raised this the great threat before the olympics begin. here to discuss the modification

-- the motivation behind the , glen howard. first of all, tommy who was behind these attacks? they have made statements and the lie that there were nothing but they would be targeting the olympics, and so this is the primary suspect behind that. >> these attacks today, do they follow other attacks by the same group and other regions of russia? wax yes. there have -- >> yes. in the last three days there have been three attacks inside

of russia. there has been a whole history of suicide bombings inside of russia. but this is really symbolic because it comes on the eve of the olympics and they're trying to make a statement because the olympic torch is actually going to be passing through their. on june or a 30th. that by itself will be interesting. >> give us an idea of where the city of belgrade is in relation to sochi in terms that americans can understand. >> it is roughly the equivalent of nebraska, if you're looking at a map of the united states, double brad -- the bullet brad sochi olympics would be in denver colorado. it is relatively close in proximity, about 500 miles. so it is a very lethal

combination because sochi itself is vulnerable because you have 000 athletes coming. the ability to do this with impunity is shocking and surprising. >> what has been the kremlin's response? --t is good and's strategy putin's strategy? >> he deals with an old western energy of shoot first ask questions later. he is locked up members of the opposition inside russia, he is the man with the iron fist. but the problem is that his approach has created a lot of enemies, and so the ways he has dealt with the rebels has been relevant -- really violent.

he has made a lot of enemies, and this is really dangerous to the situation because we have six weeks to go, we have 5000 athletes coming to sochi, and if there is any target anyplace anywhere, it can happen inside of russia, and it is going to put a lot of people on edge. your it have five leaders that have canceled participation in the ludwig's solely because of putin's stance. there are a lot of evil who are lining up to take names on voted because of his policy. now you have the chechnya and -- those from chechnya, and all the others. >> if the head of one of the u.s. olympic teams all do you and ask for your security recommendations, what kinds of things would you say to them? >> i would say first about, i think it is a bad idea to go to sochi. inis the warmest place

russia, it is a subtropical light -- by mesko and they been stockpiling snow for quite a while. because of his policies on opal of the first -- several is arent russia, there reason to not even talk about going. is to mention that he harboring mr. snowden in moscow, who has been linking a lot of information. the white house and the u.s., they keep bending over backwards in many ways to try to improve what -- relations with russia. everyush taken opportunity does not see united aides. i think it is a bad idea to go to sochi. there wasn area where many murders, it is a bloody area. it is like having the a in our sweats. ad is just from a historical perspective.

drone the climate, and the fact that it is the warmest place in russia, i do not think it has a lot of ingredients for success to begin with. now you throw in terrorism with that, and it is a bad mix of issues. >> thank you very much for joining me. but howard is the president of the jamestown foundation, joining us from washington dc. is charity status all a sham? bowl gay the moneygoes -- mgame goes. and our first mystery guest clue. ♪

season andwl game many college football games mean the money in the form of sponsorships and ticket sales. my next guest says that while the old games enjoy a charity

status, less than two percent of the revenues actually go to charities. 10 stern is the president at palisades media, any he is the former chinese just teed executive at national public radio. former chief executive at national public radio. great to have you with us here on bloomberg. describe the difference between nonprofit charity status, and football bowl games. them, alles, all of 35 of them, are typically registered at 501(c)(3) charities. educational charities, amateur athletic charity, side to charities, their charities like the red cross, habitat for humanity of and they are all tax exempt. wrong with nothing being a tax-exempt organization, and raising money for charity for these ballgames, right? >> right, except at very little

of the money that is raised through the ballgames ever ends up in charities. the last time i looked it was somewhere less than two percent, which is about what the average american gives to charity. --ickly, we all should be basically, we should all be nonprofit charities. 98% of thee other money go? >> it is the executive director director of the ballgame, $600,000, 7000 -- $700,000 is a typical salary. it goes to entertaining others in college boards. the orange bowl has their summer splash for the super bowl has a standing committee on book off -- on golf. only takeallgames place with a deer. why do you need an annual salary crew to put the skin together?

isn't that complex -- isn't that complex? >> it is not. at the time the top commentator director was for the fiesta bowl, and he was only a half- time employee. the ballgames or once a year, they are the same year after year. i'm sure there are complexities about but not terrible ones. it is a very fair question to ask why these are such highly compensated executives compared to others who run charities for much less, and who are much more, located on a day-to-day basis. >> as 501 freeseas, their status is nonprofit, but the donations or the payments for services is not necessarily tax-deductible. >> sure days. c threes are charities, -- c4's and deceit

not.are taxes, seeproperty three's do not pay those other -- either. >> if you buy a ticket to a bowl game, do you get to deduct that from your income tax? >> no, because that is a transaction. wouldng above and beyond be a charitable donation and would be deked adoptable come about a transaction like buying a ticket typically would not be tax-exempt exempt. if you bought a ticket or a charitable dinner in support of a bowl game, which sometimes they have, sometimes money for that might be tax-exempt exempt. but typically, ticket is a transaction. >> this nonprofit status is not limited to ballgames. tell me about the nfl, the national football league. story.s actually quite a

there are other charities, the u.s. open, the golf term it -- tournament, they are all charities. the nfl is also a 501 c six nonprofit. those actually were stuck in the legislation in the 1960's to put the national football league's as a nonprofit. it only really support the nfl these days. the hat of the nfl, $30 million a year? >> almost $30 million, and six other current executives make more than $30 million a year. it is one of the most profitable nonprofits i've ever heard up. >> thank you for joining us. kenneth stern joining us from palisades media from washington dc. footballg to stick with

for a little bit to get some bowl matchups run nik bonaddio. with hisd numberfire who wants to be a millionaire winnings. we have 35 bowl games, let's start off with perhaps one of the best-known, the rose bowl. what are you saying about the rose bowl? >> the past couple of weeks it has become a little bit of a statein since michigan versus stanford. it is going to be a close game, michigan lost one of their most top defensive ends to me he is suspended for the game and will not play. ready sizable advantage in this game. eighton seven of their closest comparables, so we like stanford for this game. >> stanford for the rose bowl, what about the fiesta bowl? crazy, i love be

the points. you're going to what to watch blake for central florida. he is an up-and-coming quarterback, but baylor is just too good. too much speed, touchdown, this is going to be like 50-40, a huge game. >> what about the sugar bowl? yup oklahoma versus alabama. to want tois going excise the demons. team.re the best they're going to beat up docomo pretty bad, because they have better office and under defense. >> alabama over oklahoma am and what about the bcs championship? >> last year alabama was the better team, and now the same situation, florida state is better than auburn. they have the number one car rigged offense and defense with

their one of the best teams we have seen in a long time. florida state is going to win this pretty easily. >> are you following these analysis yourself? do you buy into this? bowl,nford for the rose alabama, florida state? if everything will day. when he use math, it is like stocks. you could just go and randomly pick if you'd use math. we feel pretty confident about those four picks. >> we will have to check in with you after the games to see how the computer model -- >> you can make fun of me if we were wrong. >> not a chance. , ceo you to nik bonaddio of numberfire. next i will speak to

>> want to ring in the new year with the right vibe that your party? my next guest has some tips. ofdimitry mak is the dj choice. he also regularly spins at some top and use that include one oak, as well is the marquee. welcome to "taking stock. " thatre the first dj combines this world of rada and cartier and also having your own app for my life. how did you get into this business? , just lovingnd being music around -- around music all the time. new york is very rich with musical history, a lot of -- in the 70's the punk rock music, in the 80's, there was a lot of music in new york.

i got it straight and a lot of it, and i just want to take it. dj cannot be an easy job. >> it is a lot of hard work, i lot of hours, a lot of practice. >> is a competitive? >> very. if you can make it in new york, you could make it anywhere. it is one of the toughest markets as well as dj'ing goes. >> how do you measure the success of a dj? how many times they get asked to do the work? >> everyone has different ideals of what they want to become. how many celebrities show up to your party, some people just want to have a fun room that everybody is going crazy. everyone has their own version of success. >> tell me about your version of of aiming to

have. you have also put together an app for your mobile phone that is called night up. >> it is an app about customizing your nightlife experience. you can go out, pick out what club you want to go to, it will tell you what kind of music will be played, where it is, what to expect. if you would go online and pick out a vacation, you choose your room, where you are going, how much you want to pay, etc. >> doesn't offer up her views or tell you what you are interested in is really going to happen? >> yes, you can pick out what kind of music you're going for about what kind of new -- room .t is, big, lounge >> can you cut in the line? >> you can make reservations through the app and get in that way. >> can you get in by knowing the

dj? >> that helps, and being nice to the doorman. have a good ratio of guy and girls. i dimitrye just drop mak. >> yes, tell them you're with me. [laughter] getsming up, the big apple ready for the million people that will pack into times where to see the ball drop -- into time square to see the ball drop. ♪

this is "taking stock" on bloomberg. i am pimm fox. it that for a look at today's market moving headlines. rosending home sales

less than projected. here -- hewlett-packard is in advanced talks with the u.s. debt that department and the sec to resolve investigations of potential acts of bribery in foreign countries. under the foreign corrupt policies act bribery officials outside the u.s. -- bribing officials outside u.s. is allowed. violations of poland, russia, mexico, and other countries. new york city's times or will be charging up -- will be charging this new year's eve. llingtuesdays is se 1395 perfor as much as$

a ple to enjoy it -- meal. justice,preme court spiderman, and a ton of confetti, some of it even here. to be a bigg crystal ball. turning now is the try -- times square alliance president tim tompkins. if not getting any confetti on you. you're a veteran time square ball dropping aficionado. >> i get paid to throw confetti. >> how many times have you been at a ball drop? >> 11 times. thoser the course of years, what have you seen change in the way it's organized? >> the crowds have been bigger and bigger, and we gone from not having webcast to six hours of

live entertainment. because of the way time square used to be, they were afraid to even play music -- recorded music because they thought the crowd to get out of control. now there are six hours of live entertainment. anything from miley cyrus to etheridge, i whole range of people. ? >> the ball drop. this goes back to 1937? >> 1907. it was 25 watt incandescent lightbulbs, and that we have 32,000 philips led two and we water for crystal that makes it beautiful. it is a mix of old and new innovation and cutting-edge technology. >> one thing he was sent to deal with is the planning that goes through all of this. there must be a lot of different pieces to make this thing go smoothly. >> there are hundreds of people that are working tomorrow night. a work all year round on this, and there are a lot of people working a long time on this. ball> what happens to the

after it is dropped? pole allys up on the year round to be a beacon for people all year round. >> the ball drop is just a part of this their marty. we have a supreme court justice that is going to be there. >> it is always a tradition to have an honored guest there, and we are honored to have her. she writes in her biography that dreams give us the will and aspiration to be bigger and better. , newg a guest like her yorker, bronx bred, been through some tough things, but has kept going, that is what new year's is about. >> what opposite dirty for the whole event -- what about security for the whole event? >> we have the nypd, they are the best security force in the world. >> you expect a million people?

>> a million people in and around time square. over a billion people watching worldwide, and 150 million americans. various amounts of colored confetti, to give us an idea of confetti that rained down, do you cut it all yourself? >> i do not. it is about a ton of confetti, so it is quite a bit. it is about celebrating the people we want -- we love and the good things in life. no matter how crazy the world is. -- look back and take stock, and look forward and see all things new. >> it is all technology at this point. be handshaken. >> how did you get to be the

head of the times square alliance? >> i used to work in city government, and did a lot of stuff related to cities. time square is this representation of what people love and hate a better -- about america. and so we take care of it. >> you have a resolution for 2014? >> i would like to be more patient, and your coworker is not into resolutions, but having a plan to look forward. everybody does it in their own way, but it is just about taking a pause, looking at where we have been, and see where we want to be. >> where are you going to be tomorrow evening? >> i will be out on the stage with the justice. that will be a real honor for me personally, and when the confetti falls, and a lot of them have wishes on them.

you will grab aps and it will you a wish -- a piece and can type in a wish that will be printed out on a piece of confetti and it will be dropped at midnight. >> can you watch the ball actually drop on your smartphone? >> you can. that is why the audience has been growing so much. you can type in time square new year's eve, and you can find one of these apps and watch it on your mobile device. >> these restaurants that have been changing their prices because there's a huge demand for this. is this something that just last for a day? >> it is basic supply and demand amount like the hotel rises that go up when the lyrics come -- olympics come. people pay a premium to be near that, to be near the energy and the roar, and have drinks with

friends. >> we will be looking forward to it. thank you, tim tompkins, president of time square alliance. there will be plenty of champagne flowing on news years eve. my next guest tells us all how to select the best bubbly. that is next. ♪

mamas confetti's noisemakers, and of course champagne. three hallmarks of a new year's eve celebration. company has been making bubbly for more than 200 years. the executive is price -- vice president of laurent-perrier. comes from a specific region and france come and you cannot call it champagne any other place. >> right.

there are a number of rules that govern what goes into a bottle champagne. it has to have three the civic grapes and it. chardonnay and pinot noir of the major grapes. those are completely different grapes altogether messier not aally comparing -- it is not question of is a rose by any other name just as we, but it is very different. >> how do you get it be so bubbly? >> is a complex chemical process but it physically goes through a second fermentation. for champagne may actually trap those bubbles in the bottle. we trap those bubbles in the bottle in which it will be sold, and that is actually different othersher things like that are made in a big tank.

and champagne, the only way that we get the bubbles and there is to keep this under pressure in this bottle for anywhere from two years to 15 years. ? >> one of the things about those bubbles is that they have to be of a certain consistency and lightness. what are some of the rules governing this? ways to get certain bubbles and the bottle. you could just inject carbon dioxide, that is how you get soda. the second way is to do the thenntation method, and the barrel method that i mentioned earlier. the fermentation creates the finest bubble. i like that word, the bead that is in the bubble. i know you brought some bottles with you, and i was wondering if you could go through them to explain to people what the difference is? for 200ve been around

years, we've created a number of different styles of champagne. there is a champagne for every palate. this is our vintage brew. there's a huge variation of what can be in the bottle. this is the standardbearer. champagne, this is what people are expecting. it is mostly chardonnay. light elegant, complete party champagne. is can go to something that a champagne that has no sugar added to it whatsoever. this is the driest champagne that you can get. it also has fewer calories because of that, so if you wanted to start your new year's resolution and little the early -- >> is this the pacific league for a -- is this specifically a blue label so you can identify it? >> we like to keep that this tingly different -- this distinctly different.

it is a minerally difference. >> what about the rosé? even the bottle itself is an iconic element. >> we are the largest selling rosé champagne in the world. had not been produced for a very long time in champagne. when we produced it we decided we wanted to put it in a bottle that had historical significance. this is a bottle that would have been served at the time of henry the fourth. so while we are very concerned about the heritage and authenticity in france, we wanted to pay a modest to the -- to the old world. this is 100% pinot noir. in vintage inp champagne, and blended and put

into this bottle, and then age in the bottle for about four years. during that four years we developed that fine bead. >> let's say that it is more than just a couple who is celebrating, and you want to bring something a little larger. you have two larger bottles them a what are they called, and what do they represent? >> exonerations call for big bottles. , have brought along to magnums of our top-of-the-line jim paid -- ca champagne. this is 1.5 liters. it is about 10 glasses, which is a good amount of champagne, even if it is just a couple, if it is a big celebration. multi-vintage blunderbuss line that is from three years that we are feeling are a vintage quality. this is a blend of three probablyyears that had

during characteristics that when blended together feel like the best expression of what champagne can do. campaign is about the land, whether be white or red grapes, or about the years. this is a high level of refinement. the final bottle is our vintage bottling of our prestige champagne. >> is that the name of someone from the family? >> it is. is the daughter of the patriarch of the house. this was honored specifically for her wedding. ais was just released, it is 2004 vintage, and it captures a special moment in time in champagne. it was difficult in the beginning, but he became truly memorable. just something special about 2004 that without was with commemorating and elevating to the status of our prestige

champagne. >> what is the cost to commemorate new year's eve? prices.the range of the >> in the magnum format we are aboutg at about $750, half of that for the regular. if it is a little bit of a less elaborate celebration but it is about $340 a bottle. >> thank you so much. happy new year from laurent- perrier u.s. clue.or our third final ♪

>> all right, it is mystery guest monday, i have no idea who my next guest is, but my users have given us a few clues. my mystery guest's team has posted a winning record 13 seasons in a row. the travel schedule of my this or guest has included london as well as rock -- a rock, and back-to-back accomplished was in the nfl. let's bring them out. i do not think you're going to look at all like this. you do not play football, do you? are you associated with football? >> yes. >> 13 consecutive, are you english? >> no. to iraq togo entertain the us military? >> you are part of the uso to her -- tour. you are in london, but did not late football -- play football.

are you a cheerleader? you are cheerleader for a current team that has played recently london? are you a cheerleader for the tampa bay buccaneers? iua cheerleader for the burgh steelers? are you cheerleader for the new england patriots? you are on the field with them on wimbley stadium that -- in london? >> i just went for appearances. >> i do not know who you are, but can let -- but congratulations. lsi, very nice to have you -- you.a, very i to have

and iance competitively, missed performing muscle i heard knew the tryouts, and i some of my friends who are cheering, and i made it. i cheered in the seasons of 2000 and 20,010, and now i live in your city. >> congratulations. one of the things that happens with cheerleaders as they have grander image of their own. calendars, things like that, what have you done to further your own career? >> i have a health food blog. i pursue the healthy living, and active lifestyle, so does called spinach for breakfast. >> like popeye? >> exactly. i started it with my sister, and it is about healthy living and eating clean. balancing it with a social life in your city, and living in new

york city in your 20's. >> go back to your you parents -- toe uso to let terri door appearance on the uso tour. >> we went to iraq and kuwait, and it was an amazing experience. i might have got more out of it than the troops themselves. we're traveled from base to base, and visit the troops, and cheer them on, bring them a little bit of home. >> the trip to iraq but did that change your feeling about what you wanted to do in life? >> it is crazy, because i was so young, 19 and a sophomore in college, thinking about the next party. it really opened up my eyes for what people do for this country and the world. and humbled me a lot and made me a better person. >> how rigorous is the

cheerleading part of it? it looks easy on television. >> lots of practicing, we put a lot of hours into it. >> who comes up with the routines? >> are coach and our captain. every sunday we switch out word -- which routines we do. >> do cheerleaders go from team to team? >> yes. i'm a friend who went to the jets. >> do you have a favorite player or team? >> i will always love the patriots, i am a huge tom brady fan. sorow watching teddy briski,

i was able to watch and charity events with him. he will always be one of my favorites. >> what a way to do for the super bowl? >> i hope i will be going to the super bowl, in the stands. >> great to meet you. markets.n the to.aq, down -- two. happy new year. ♪

>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world.

our focus is on innovation, technology and the future of business. flying robots are coming. the faa approves drone tests in six states. we will tell you which states got the green light. user backlash over its pricing policy